HELB Clarifies Reports Claiming New Funding Formula Will Increase Loan Interest Rates

HELB Opens Loan Applications for Kenyan Nurses Seeking Advanced Studies

The Higher Education Loans Board (HELB) has dismissed allegations that the proposed funding formula will increase loan interest rates.

In a statement issued on Friday, August 7, the Higher Education Loans Board (HELB) said the loan interest rate remains at 4% per annum for students in universities, Technical and Vocational Education and Training (TVET) institutions, and the Kenya Medical Training College (KMTC).

The Board said any claims indicating an increase in loan interest rates should be supported by facts and based on official communication from its official communication channels.

“The current HELB loan interest rate for undergraduate, TVET, and KMTC students remains at 4% per annum. Any claims suggesting otherwise should be supported by verified facts and official communication from HELB,” reads part of the notice.

HELB stated that its mandate remains to make higher education more accessible and affordable.

Tertiary Education Funding Review Bill

The Ministry of Education has unveiled a proposed higher education funding model aimed at reforming the financing of students in public universities and Technical and Vocational Education and Training (TVET) institutions.

The proposal is contained in the Tertiary Education Funding Review Bill, which seeks to implement President William Ruto’s pledge to provide free education for eligible students.

Under the proposed Bill, the government will provide loans to the majority of government-sponsored students, while reserving scholarships for top-performing students and those from vulnerable families.

Also Read: HELB Gives Directions to Students Who Haven’t Received HEF Portal Activation Links

Merging HELB, Universities Fund & TVETFB

The proposal also seeks to establish a single authority to oversee the disbursement and recovery of higher education funds.

If approved, the HELB, the Universities Fund, and the Technical and Vocational Education and Training Funding Board (TVETFB) will be dissolved and replaced by the Tertiary Education Funding Authority (TEFA).

Also Read: Govt Reveals Changes to University & TVET Funding in New Higher Education Bill

“We have €56.7 million allocated by this institution to help. The University fund has €30.9 million, and TVET has been allocated €9.2 million. These funds are supported by different institutions, and we are working to bring them together and use the energy of this money to improve the fund,” the Ministry of Education stated.

Education Cabinet Secretary Julius Ogamba and HELB CEO Geoffrey Monari tabled this proposal before the National Assembly Departmental Committee on Education on Wednesday, August 5, 2026.

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